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(Bloomberg) -- Credit Suisse Group AG announced plans to raise $4 billion in a rights offering, abandoning plans to hold a partial initial public offering of its Swiss business.

“We have decided not to pursue a partial initial public offering of our Swiss banking subsidiary Credit Suisse (Schweiz) AG, thus retaining full ownership of a historically stable income stream in our home market of Switzerland and avoiding complexity in the business structure and activities of a key division of the Group,” the bank said in a statement Wednesday.

A project that began in late 2015, the Swiss listing ran into opposition from analysts and investors, who questioned the merit of splitting a business than generates more pretax profit than other units. Credit Suisse’s shares have rebounded from a record low in July, making it more attractive for the bank to issue equity in the entire company.

Credit Suisse expects its common equity Tier 1 capital, a measure of its ability to absorb losses, to be 13.4 percent following the capital increase of 4 billion francs, which it will propose at an extraordinary shareholder meeting on May 18.

Credit Suisse would be the third major European bank to sell shares this year. Deutsche Bank AG and UniCredit SpA raised 8 billion euros and 13 billion euros respectively, taking advantage of higher share prices.

European banks have rallied on the prospect that economic growth and rising interest rates could help revive earnings. Still, Credit Suisse is still down more than 30 percent from when Chief Executive Officer Tidjane Thiam announced the IPO plan in October 2015.

To contact the reporter on this story: Jan-Henrik Förster in Zurich at jforster20@bloomberg.net.

To contact the editors responsible for this story: Elisa Martinuzzi at emartinuzzi@bloomberg.net, Cindy Roberts

©2017 Bloomberg L.P.

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